25 February 2025

Many tax professionals and their clients have on their minds the favorable individual and estate tax provisions enacted under the Tax Cuts and Jobs Act (TCJA) of 2017 set to expire at the end of 2025. Without legislative action, the top individual tax rate will revert to 39.6% from its current 37%. The gift, estate, and generation-skipping transfer (GST) tax exemption amount, currently set at $13.99 million per person ($27.98 million per married couple) will be significantly reduced to an estimated $7 million per person ($14 million per couple) starting in 2026. Some believe there is little chance that the exemption amounts will be reduced with the Republican control of the White House and Congress and the Republican Party's stated goal of seeking to extend the favorable provisions of the TCJA on a temporary or permanent basis.

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